The ISI has shared intelligence with Lashkar and provided protection for it, officials said, and investigators are focusing on one Lashkar leader they believe is a main liaison with the spy service and a mastermind of the attacks, (Zarrar Shah who links directly to Muslim Mafia "Don" Dawood Ibrahim).

Pakistani officials have denied any government connection to the siege on Nov. 26-29, in which nine gunmen and 163 other people were killed. A Pakistani official confirmed on Sunday that security forces had initiated an operation against at least one Lashkar camp. The Associated Press, citing militants and an unidentified senior official, reported Monday from Islamabad, Pakistan, that Pakistani troops had seized a former Lashkar camp, in the Pakistani part of Kashmir, that is now used by the group’s charity wing, Jamaat-ud-Dawa. “More than 12 people” were arrested, The Associated Press said.

NEW DELHI: As Pakistan president Asif Ali Zardari publicly trashed India's "list of most wanted 20" on TV, refusing to hand them over, the question being asked here is, was this the right time for India to dust out the 2002 list of wanted criminals to give to Pakistan?

Instead, in the present context, India's list to Pakistan should have read something like this: that India needed to see action on or deportation of a much shorter but more relevant list of people, all of whom had a connection to last week's attacks on Mumbai. They could include Zakiurr-Rahman Lakhvi alias Chachu (Lashkar-e-Taiba commander), Zarrar Shah (LeT commander),Muzammil (LeT operative), as a first.

And then they could be followed up with Dawood Ibrahim (who may still have funded the attacks), Hafiz Mohammed Saeed (chief LeT) and Masood Azhar (leader of Jaish-e-Mohammed) who had to be released in exchange for the passengers on board 1C-814 which had been hijacked by a Jaish group.

Pakistan Presient Asif Zardari, just like his predecessor Pervez Musharraf a few years ago, sought to run down the demand by saying that it was not backed up by any investigation. Zardari told CNN's "Larry King Live" programme, "I am definitely going to look into all the possibility of any proof that is given to us....At the moment, these are just names of individuals. No proof, no investigation, nothing has been brought forward." If proof of the individuals' involvement is provided, he said, "we would try them in our courts, we would try them in our land, and we would sentence them."

Sources said the don was so confident that he would not be touched by the Pakistani establishment that he had made no changes in his daily routine. Dawood Ibrahimcontinues to phone his contacts in Mumbai. Recently, Mohammed Ali, a contact who fronts for him in the real estate business reportedly sent Rs 120 crore via hawala, sources in the government stated. The hawala channel between Mumbai and Karachi remains busy.

Ali is known to be the king of the docks who runs a massive smuggling racket and has a grip over all coastal operations in the metropolis. He is known to indulge in smuggling of diesel, petroleum, naptha, drugs, stolen cars and armswithout interferance and it appears that the terrorists had used his network to enter the city by the sea route.

The Times Of India was the first to report (July 2, 2008) about the emergence of Ali as the key person looking after Dawood's operations in Mumbai. Despite having a detailed dossier on him, the authorities have not taken any action against him. What is more worrying is that Ali is believed to have also penetrated naval intelligence.

They targeted places frequented by foreigners in south Mumbai and knew the exact route to be taken from the coast. This was made possible by inputs provided by the D Gang, said sources. Sources in security agencies said Dawood has made a few thousand crores in real estate transactions and is diverting a part of the funds for terror operations.

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